OKLAHOMA WATER RESOURCES BOARDFINANCIAL ASSISTANCE PROGRAMS

REQUEST FOR PROPOSALSINDEPENDENT AUDITOR

The Oklahoma Water Resources Board (“OWRB”) is soliciting competitive proposals from auditing firms to perform auditing services for the year ended June 30, 2018 with optional extensions. This proposal is for State Loan Program Revenue Bond Issues, the Clean Water State Revolving Fund Loan Program, the CWSRF and DWSRF Loan Administration Funds, and in conjunction with the Oklahoma Department of Environmental Quality (“DEQ”), the Drinking Water State Revolving Fund Loan Program and Set-Aside Programs.

The ProgramsThe Oklahoma Water Resources Board was established by legislative action in 1957 as a body corporate and politic and an instrumentality, agency and department of the State of Oklahoma (the “State”). Authority for existence and powers of the OWRB are found at Title 82, Oklahoma Statutes 2011, and Sections 1085.1 et seq., as amended.

The DEQ was established by legislative action in 1993 as an agency of the State. Authority for existence and powers of the DEQ are found at Title 27A, Oklahoma Statutes 2011, Sections 2-3-101 et seq., as amended.

The OWRB is authorized to provide or assist political subdivisions and municipal corporations of the State, including counties, cities and towns, rural water and sewer districts, irrigation districts, and public trusts in the acquisition, development, and utilization of storage and control facilities for the waters and sewage of such governmental entities for the use and benefit of the public and for the distribution of water for beneficial purposes in or from reservoirs or other storage facilities for the general welfare and the future economic growth of the State. Specifically, the OWRB is empowered to provide funds to local eligible entities to assist in the development of facilities for the treatment and distribution of water from storage or filtration and treatment plants to wholesale or retail purchasers, and any system necessary to improve or develop sewage treatment, collection, or distribution capabilities or to refinance existing indebtedness originally incurred for such purposes.

The OWRB is authorized pursuant to Title 82, Oklahoma Statutes 2011, Sections 1085.31 et seq., as amended, to issue investment certificates (i.e., bonds or other obligations) to provide the necessary funds to meet the anticipated needs for the funding of properly approved projects. The Revenue Bonds are issued for the purpose of providing funds to loan to local eligible entities throughout the State for making water and sewer improvements or refinancings thereof.

The OWRB is authorized pursuant to Title 82, Oklahoma Statutes 2011, Section 1085.51 et seq., as amended, to receive the Environmental Protection Agency (the “EPA”) CWSRF Capitalization Grants that sustain the Oklahoma Clean Water State Revolving Fund Loan Program. The OWRB is further authorized to issue its obligations of indebtedness to provide the necessary annual state matching funds and to provide additional funds needed to meet funding demands. Proceeds of the federal capitalization grants and the obligations of indebtedness are utilized to make low-interest loans to eligible entities for eligible water quality project costs. Loan repayments are revolved through the CWSRF and utilized to make additional loans and any debt payments.

The DEQ is authorized pursuant to Title 82, Oklahoma Statutes 2011, Section 1085.71 et seq., as amended, to receive the Environmental Protection Agency DWSRF Capitalization Grants that sustain the Oklahoma Drinking Water State Revolving Fund Loan Program. The DEQ is charged with administering certain set-aside programs as designated in the annual capitalization grant agreement with the EPA, and with recommending candidate drinking water projects to the OWRB for funding. The OWRB is authorized to issue its obligations of indebtedness to provide the necessary annual state matching funds and to provide additional funds needed to meet funding demands. Proceeds of the federal capitalization grants and the obligations of indebtedness are utilized to make low-interest loans to eligible entities for eligible drinking water project costs. Loan repayments are revolved through the DWSRF and utilized to make additional loans and any debt payments.

The OWRB deposits the proceeds of any obligations of indebtedness with its Trustee Bank (currently BancFirst of Oklahoma City, Oklahoma). Funds within the CWSRF and the DWSRF are maintained with the State Treasurer and other investment facilities. The OWRB accepts applications for project financing from eligible entities, reviews (along with the DEQ, as necessary) appropriate financial and technical data related to the proposed project, and then forwards the application to the OWRB Board for approval. Loan proceeds are disbursed to fund eligible project costs pursuant to an approved requisition system adopted in conformity with the rules and regulations of the OWRB codified at Oklahoma Administrative Code Title 785:50.

See Appendix One below for additional information relating to the OWRB’s outstanding obligations and the corresponding financial assistance programs.

Scope of Services

Audit of Revenue Bond Issues under the 1986 General Bond Resolution The independent auditor shall provide the OWRB professional services as and when required in auditing the OWRB's 1986 General Bond Resolution which includes the Series 1999 Bonds, and the Series 2001 Bonds, the Series 2003A Bonds, the Series 2007 Bonds, the Series 2009 Bonds, the Series 2010A Bonds, the Series 2010B Bonds, the Series 2011 Bonds, the Series 2012 Bonds, the Series 2012A Bonds, the Series 2012B Bonds, the Series 2012C Bonds, the Series 2013A Bonds, the Series 2013B Bonds, the Series 2014A Bonds, the Series 2014B Bonds, the Series 2014C Bonds, the Series 2015A Bonds, the FAP Collateral Fund, and the General Debt Service Reserve Fund for the year beginning July 1, 2017 and ending June 30, 2018, all in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards as issued by the Comptroller General of the United States. The financial statements will be presented in accordance with accounting principles generally accepted in the United States. A ll revenue bond issues under the 1986 General Bond Resolution will be combined into a single revenue bond fund for external financial statement reporting purposes, with combining schedules of each revenue bond issue shown as supplementary information.  It is expected that the auditor will provide "in-relation to" assurance on these combining schedules. The independent auditor shall prepare and submit to the OWRB, no later than October 15, 2018, one (1) electronic copy in PDF file format, which will address the Revenue Bond issues below:(1) The OWRB's Revenue Bonds Statement of Net Position.

(2) The OWRB's Revenue Bonds revenues and expenses during the fiscal year with regard to the funds and accounts established by the applicable Bond Resolution, via a Statement of Revenues, Expenses and Changes in Net Position.

(3) The OWRB’s Revenue Bonds Statements of Cash Flows. (4) A schedule of revenue bonds outstanding at the end of the fiscal year, together

with a statement of the amounts paid, redeemed, and issued during the fiscal year.

Audit of Revenue Bond Issues under the 2016 General Bond ResolutionThe independent auditor shall provide the OWRB professional services as and when required in auditing the OWRB’s 2016 General Bond Resolution which includes the Series 2016A Bonds, the Series 2017A Bonds, the Series 2017B Bonds, the Series 2017C Bonds, the Series 2018A Bonds and the 2016 Debt Service Reserve Fund for the year beginning July 1, 2017 and ending June 30, 2018, all in accordance with generally accepted auditing standards and Government Auditing Standards as issued and revised by the Comptroller of the United States. The financial statements will be presented in accordance with accounting principles generally accepted in the United States. A ll revenue bond issues and reserve fund under the 2016 General Bond Resolution will be combined into a single revenue bond fund for external financial statement reporting purposes, with combining schedules of each revenue bond issue shown as supplementary information. It is expected that the auditor will provide "in-relation to" assurance on these combining schedules. The independent auditor shall prepare and submit to the OWRB, no later than October 15, 2018, one (1) electronic copy in PDF file format, which will address the Revenue Bond issues below:(1) The OWRB's Revenue Bonds Statement of Net Position.(2) The OWRB's Revenue Bonds revenues and expenses during the fiscal year with

regard to the funds and accounts established by the applicable Bond Resolution, via a Statement of Revenues, Expenses and Changes in Net Position.

(3) The OWRB’s Revenue Bonds Statements of Cash Flows. (4) A schedule of revenue bonds outstanding at the end of the fiscal year, together

with a statement of the amounts paid, redeemed, and issued during the fiscal year.

Audit of Clean Water State Revolving Fund Loan ProgramThe independent auditor shall also provide the OWRB such professional auditing services as may be required in auditing the Oklahoma Clean Water State Revolving Fund Loan Account for the year beginning July 1, 2017 and ending June 30, 2018, all in accordance with generally accepted auditing standards, Government Auditing Standards as issued and revised by the Comptroller of the United States, and OMB Uniform Guidance (if and as required, a Single Audit may be necessary. Please provide a fee for such audit in fees and expenses.) The independent auditor shall prepare and submit to the OWRB no later than September 20, 2018, one (1) electronic copy in PDF file format, which will address the items below: (1) The OWRB's CWSRF Statement of Net Position.(2) The OWRB’s CWSRF revenues and expenses for the fiscal year with regard to

the funds and accounts established by the OWRB for the CWSRF Program, via a Statement of Revenues, Expenses and Changes in Net Position.

(3) The OWRB’s CWSRF Statement of Cash Flows.

Audit of Clean Water State Revolving Fund Loan Administrative FundThe independent auditor shall provide the OWRB such professional auditing services as may be required in auditing the Oklahoma Clean Water State Revolving Fund Loan Administrative Fund for the year beginning July 1, 2017 and ending June 30, 2018, all in accordance with generally accepted auditing standards and Government Auditing Standards as issued and revised by the Comptroller of the United States. The independent auditor shall prepare and submit to the OWRB no later than September 20, 2018, one (1) electronic copy in PDF file format, which will address the items below:(1) The OWRB’s Statement of Net Position with respect to the Clean Water SRF

Loan Administrative Fund.(2) The OWRB’s revenues and expenses with regard to the administrative funds and

accounts established by the OWRB for the Clean Water SRF Loan Administrative Fund, via a Statement of Revenues, Expenses and Changes in Net Position.

(3) The OWRB’s Statement of Cash Flows for the administration activities of the Clean Water SRF Loan Administrative Fund.

Audit of Drinking Water State Revolving Fund Loan Administrative FundThe independent auditor shall provide the OWRB such professional auditing services as may be required in auditing the Oklahoma Drinking Water Treatment Loan Administrative Fund for the year beginning July 1, 2017 and ending June 30, 2018, all in accordance with generally accepted auditing standards and Government Auditing Standards as issued and revised by the Comptroller of the United States. The independent auditor shall prepare and submit to the OWRB no later than September 20, 2018, one (1) electronic copy in PDF file format, which will address the items below:(1) The OWRB’s Statement of Net Position with respect to the Drinking Water SRF

Loan Administrative Fund.(2) The OWRB’s revenues and expenses with regard to the administrative funds and

accounts established by the OWRB for the Drinking Water SRF Programs Loan Administrative Fund, via a Statement of Revenues, Expenses and Changes in Net Position.

(3) The OWRB’s Statement of Cash Flows for the administration activities of the Drinking Water SRF Loan Administrative Fund.

Audit of Drinking Water State Revolving Fund Loan Program and Set-Aside ProgramsThe independent auditor shall also provide the DEQ such professional auditing services as may be required in auditing the Oklahoma Drinking Water State Revolving Fund Loan Account for the year beginning July 1, 2017 and ending June 30, 2018, all in accordance with generally accepted auditing standards, Government Auditing Standards as issued and revised by the Comptroller of the United States, and OMB Uniform Guidance (if and as required, a Single Audit may be necessary. Please provide a fee for such audit in fees and expenses.) The independent auditor shall prepare and submit to the DEQ no later than September 20, 2018, one (1) electronic copy in PDF file format, which will address the items below: (1) The DEQ’s Statement of Net Position with respect to the Drinking Water State

Revolving Fund Loan Program and the DEQ’s six Set-Aside Programs.(2) The DEQ’s DWSRF Loan Program revenues and expenses for the fiscal year

with regard to the funds and accounts established by the DEQ and OWRB and the DEQ’s Set-Aside Programs revenues and expenses for the fiscal year with

regard to the funds and accounts established by the DEQ for the six Set-Aside Programs, via a Statement of Revenues, Expenses and Changes in Net Position.

(3) The DEQ’s Statement of Cash Flows for the DWSRF Loan Program and the Set-Aside Programs.

As stated above, the OWRB financial activity is required to be audited under Government Auditing Standards, and, if applicable, OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

The Auditor is responsible for submitting the OWRB’s audited financial statements required under O.S. Title 74 Section 212A.A2 and O.S Title 11, Section 17 to the State Auditor and Inspector’s Office and pay the required $100 filing fee for each audit.

The Auditor is responsible for submitting the Clean Water and Drinking Water Single Audits to the single audit clearinghouse if such audits are required.

The OWRB requires the auditor to present the reports to management of the OWRB in the form of exit conferences, audit committee meetings, and OWRB Board Meetings.

The OWRB requires the auditor to allow inclusion of the audit reports in the official statements for any OWRB debt issuances. 

Pursuant to 74 O.S. §85.44(B), invoices will be paid in arrears after services provided. Payment terms will be net 45. Additional terms which provide discounts for earlier payment will be evaluated when making an award. Additional terms shall be no less than ten (10) days increasing in five (5) day increments up to thirty (30) days. Discounts offered must be in half or whole percent increments. The date from which the discount time is calculated shall be the date of a valid invoice. An invoice is considered valid if sent to the proper recipient and services have been provided.

The fiscal year 2017 audits are available on the OWRB website www.owrb.ok.gov/audit under Section 1.

Proposal requirements:

One (1) original and two (2) copies submission of any proposals must be submitted to the address provided below no later than 3:00 p.m., CT, on Monday, April 10, 2018. Email or Facsimiles proposal submissions will not be accepted, however, Cd/DVDs proposals are acceptable(2 copies only). Sealed proposals will be date and time stamped upon receipt. Proposals received after the deadline will not be considered.

Anil PillaiOklahoma Water Resources Board

3800 N. Classen Blvd.Oklahoma City, OK 73118

Anil.Pillai@owrb.ok.govTransmittal letter—the auditor should summarize the services provided, the qualifications of the firm and the firm fixed fee cost for the services.

The Proposing Firm’s Technical Proposal should include discussion of the following:

1. Independence—State that the firm is independent with respect to the OWRB. List any potential impairments to the firm’s independence with respect to the OWRB.

2. License to Practice—State whether the firm is licensed to practice public accounting within the OWRB’s jurisdiction. State also whether the firm is on the Oklahoma Accountancy Board’s list of governmental auditors.

3. How the Firm meets the Mandatory Elements—State how the firm meets the Yellow Book requirements.

4. Disclose the limit of the firm’s insurance policy for errors and omissions.

5. Partner, Supervisory and Staff member Qualifications and Experience—Summarize the experience of key audit staff members who will perform the audit work. For each team member list the relevant State & Local government experience for each including the number of years of experience with State & Local governments.

6. Similar Engagements with other Government Entities—Summarize five completed engagements with comparable governmental clients completed in the last 3 years. Give the following information for each governmental entity: Entity name, Entity type, Contact name and telephone, and description of the engagement with total audit hours to complete the engagement.

7. Detailed Work Plan—Summarize the major sections of the audit work plan and provide a detailed work plan totaling the number of audit hours required of the audit staff to complete the audit.

8. Schedule of Hours, Hourly rates and expenses—Summarize the required number of hours at the standard hourly rates of partners and team members. Please break out the hours and expenses for the portion of the compliance audit required by the Uniform Guidance.

9. Report of the Most Recent Peer Review—provide a copy of the firm’s most recent peer review report.

Evaluation CriteriaThe selection committee will review proposals and make evaluations based on the following criteria.

1. Does the firm meet the Yellow Book requirements as it relates to CPE? Peer Review?

If the firm does not meet the Yellow Book requirements, it will not be considered a valid candidate for the procurement of the OWRB’s auditing services. The firm should also be on the Oklahoma Accountancy Board’s list of Government Auditors

2. Firm’s understanding of the servicesDoes the firm demonstrate its knowledge and experience of the Yellow Book and Single Audit Standards?

3. Firm’s single audit experienceDoes the firm demonstrate experience with the types of federal programs conducted by the OWRB and DEQ?

4. Firm’s experience with State & Local GovernmentsDoes the firm demonstrate experience with any State & Local governments of the breadth and size of the OWRB and DEQ?Does the firm demonstrate a rapport with Board members and members and the general public?

5. Firm capabilities of performing auditing servicesDoes the firm demonstrate that it has the staff available to perform the engagement?

6. Firm capabilities of performing other services for the OWRB and DEQ.Does the firm demonstrate expertise with the specific issues encountered by the OWRB and DEQ?

7. ReferencesAre the listed references positive about the firm?

8. Cost as it relates to a reasonable estimate of audit hoursIs the total cost to the OWRB and DEQ reasonable in light of the services and expertise received? Is the hourly cost reasonable?

The OWRB and DEQ appreciates your time and cooperation in submission of your proposal. If you have any questions please contact Anil Pillai, CPO through email Anil.Pillai@owrb.ok.gov or call 405-530-8872.

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES

FOR THE AUDIT OF THE 2018 FISCAL YEAR FINANCIAL STATEMENTS

SUPPORTING SCHEDULE FOR AUDIT SERVICES

Fees and Expenses

Provide a maximum total bid for the one year contract period and two subsequent years. Although there is no commitment on the state’s part for the subsequent years, these will be considered in reviewing and selecting the best value. Fees and expenses for subsequent contract periods beyond the three years, if extended, shall be negotiated at the time of execution of the contract extension. The “not-to-exceed” bid shall represent total compensation inclusive of all fees and expenses for all work done under the Scope of Services. The “not-to-exceed” bid should include any expenses or reimbursement of costs incurred by the Trustee Bank, if any, for furnishing any needed information. Estimated fees will not be accepted. Also, please specify what portion of the fees and expenses are allocable to each item of the Scope of Services. The OWRB maintains its books and records on each Revenue Bond issue, the CWSRF program, and the DWSRF loan program. The DEQ maintains its books and records on the DWSRF set-aside programs. The OWRB and the DEQ will make this and other information available at no cost.

Please provide two (2) separate Fee and Expense Calculations.(1) Provide Fees and Expenses for OWRB for the following:

Audit of Revenue Bond Issues under the 1986 General Bond ResolutionAudit of Revenue Bond Issues under the 2016 General Bond ResolutionAudit of Clean Water State Revolving Fund Loan Program Single Audit of the Clean Water State Revolving Fund Loan Program Audit of Clean Water State Revolving Fund Loan Administrative FundAudit of Drinking Water State Revolving Fund Loan Administrative Fund

(2) Provide Fees and Expenses for DEQ for the following:Audit of Drinking Water State Revolving Fund Loan Program and Set-Aside ProgramsSingle Audit of the Drinking Water State Revolving Fund Loan Program

ATTACHMENT 1

OKLAHOMA WATER RESOURCES BOARD- Certificate of Independent Price Determination -

By submission of this proposal, the respondent certifies that in connection with this procurement:

(1) Prior to the date established herein as the deadline for proposal submission, the prices which have been quoted in this proposal have not been knowingly disclosed by the respondent, directly or indirectly, to any other respondent or to any competitor; and

(2) No attempt has been made or will be made by the respondent to induce any other person or firm to submit or not submit a proposal for the purpose of restricting competition.

Each person signing this proposal certifies that:

(1) He/she is the person in the respondent's firm responsible within that organization for the decision as to the prices being offered herein and that he/she has not participated, and will not participate, in any action contrary to the restrictions cited above; or

(2) He/she is not the person in the respondent's firm responsible within that organization for the decision as the prices being offered herein, but that he/she has been authorized in writing to act as agent for the persons responsible for such decision in certifying that such persons have not participated, and will not participate, in any action contrary to the restrictions cited above and as their agent does hereby so certify; and he/she has not participated, and will not participate, in any action contrary to the restrictions cited above.

DATE:______________ SIGNATURE:_________________________________

SIGNATURE:_________________________________

SIGNATURE:_________________________________

ATTACHMENT II

OKLAHOMA WATER RESOURCES BOARD- Certificate of No Conflicting Relationships -

The undersigned hereby certifies that:

(1) He/she is an officer of the respondent, authorized to commit the respondent to all terms and conditions outlined in this proposal;

(2) No conflict of interest exists, or is likely to exist, between the respondent and the procuring agency;

(3) No relationship exists between the respondent and the procuring agency or any of its employees that would in any way interfere with fair competition in the selection process;

(4) There is no relationship, contractual or otherwise, between the respondent and any other individual, firm or organization that may be a party to the contract that may be a conflict of interest or would in any way interfere with the respondent's ability to perform the duties described in the Request for Proposals;

DATE:______________ SIGNATURE:_________________________________

SIGNATURE:_________________________________

SIGNATURE:_________________________________

Appendix One

Summary of the OWRB’s Outstanding and Anticipated ObligationsSummary of the OWRB’s Outstanding Obligations

As of March 31, 2018

State Loan Program Revenue Bonds under the 1986 General Bond ResolutionTitle 82, Oklahoma Statutes 2011, Sections 1085.31 et seq., as amended, provide for the establishment of financing programs for the purpose of financing water and sewer infrastructure improvements.

$75,000,000.00 State Loan Program Revenue Bonds, Series 1999 dated March 3, 1999

Variable Bonds Outstanding: $1,250,000Fixed Bonds Outstanding: $785,000Final Maturity September 1, 2032

$110,000,000 State Loan Program Revenue Bonds, Series 2001 dated September 18, 2001

Variable Bonds Outstanding: $2,165,000Fixed Bonds Outstanding: $750,000Final Maturity October 1, 2034

$100,000,000 State Loan Program Revenue Bonds, Series 2003A dated July 9, 2003

Variable Bonds Outstanding: $2,820,000Fixed Bonds Outstanding: $2,235,000Final Maturity October 1, 2036

$10,215,000 State Loan Program Revenue Bonds, Series 2007 dated March 16, 2007

Fixed Bonds Outstanding $1,435,000Final Maturity October 1, 2036

$2,825,000 State Loan Program Revenue Bonds, Series 2009 dated November 24, 2009

Fixed Bonds Outstanding $435,000Final Maturity October 1, 2031

$30,035,000 State Loan Program Revenue Bonds, Series 2010A dated June 16, 2010

Fixed Bonds Outstanding $21,625,000Final Maturity October 1, 2030

$27,955,000 State Loan Program Revenue Bonds, Series 2010B dated November 3, 2010

Fixed Bonds Outstanding $2,765,000Final Maturity October 1, 2035

$14,275,000 State Loan Program Revenue Bonds, Series 2011 dated June 23, 2011

Fixed Bonds Outstanding $11,080,000Final Maturity October 1, 2031

$30,595,000 State Loan Program Revenue Bonds, Series 2012 dated January 19, 2012

Fixed Bonds Outstanding $28,880,000Final Maturity October 1, 2040

$33,445,000 State Loan Program Revenue Bonds, Series 2012A dated March 28, 2012

Fixed Bonds Outstanding $19,985,000Final Maturity October 1, 2032

$8,750,000 State Loan Program Revenue Bonds, Series 2012B dated July 2, 2012

Fixed Bonds Outstanding $7,075,000Final Maturity October 1, 2035

$9,625,000 State Loan Program Revenue Bonds, Series 2012C dated August 29, 2012

Fixed Bonds Outstanding $3,915,000Final Maturity September 1, 2042

$43,290,000 State Loan Program Revenue Bonds, Series 2013A dated April 24, 2013

Fixed Bonds Outstanding $32,560,000Final Maturity October 1, 2038

$5,460,000 State Loan Program Revenue Bonds, Series 2013B dated July 18, 2013

Fixed Bonds Outstanding $4,170,000Final Maturity October 1, 2033

$10,180,000 State Loan Program Revenue Bonds, Series 2014A dated March 13, 2014

Fixed Bonds Outstanding $8,690,000Final Maturity October 1, 2033

$9,595,000 State Loan Program Revenue Bonds, Series 2014B dated August 1, 2014

Fixed Bonds Outstanding $9,115,000Final Maturity October 1, 2039

$20,000,000 State Loan Program Revenue Bonds, Series 2014C dated December 4, 2014

Fixed Bonds Outstanding $18,000,000

Final Maturity October 1, 2036

$21,540,000 State Loan Program Revenue Bonds, Series 2015A dated July 24, 2015

Fixed Bonds Outstanding $19,980,000Final Maturity October 1, 2040

1986 General ReserveInvestments $18,720,803Ambac Surety Policies $23,500,000

The above State Loan Program Revenue Bonds are issued pursuant to a General Bond Resolution dated as of August 1, 1986 by and between the OWRB and the Trustee Bank, as supplemented and amended. The bonds are secured by and repaid from the principal and interest repayments on local loans made from each bond issue.

Cash reserves and surety bonds are pledged to the payment of principal and interest on the bonds in the case of a debt service deficiency. The Trustee Bank invests cash reserves with several investment agreement providers. Investment Earnings are subject to Arbitrage Rebate requirements. Investment earnings in excess of amounts allowable under the Internal Revenue Code are rebated to the United States. Allowable investment earnings are transferred to the Emergency Grant Account. In case of a draw on the reserve to pay principal or interest on the bonds, future investment earnings would capitalize within the reserve until the draw is replenished. The cash reserves will not be used to redeem bonds at issue maturity except in the case of a debt service deficiency.

Local Loans are made to eligible entities at a fixed or variable rate. The variable rate resets every six months. The variable loan rate is inclusive of the interest rate payable on the bonds plus an additional percentage for Program Costs. All loans must maintain 1.25 times debt service coverage.

State Loan Program Revenue Bonds under the 2016 General Bond Resolution

$16,435,000 State Loan Program Revenue Bonds, Series 2016A dated December 21, 2016

Fixed Bonds Outstanding $16,175,000Final Maturity October 1, 2046

$27,510,000 State Loan Program Revenue Bonds, Series 2017A dated February 23, 2017

Fixed Bonds Outstanding $27,485,000Final Maturity October 1, 2046

$8,310,000 State Loan Program Revenue Bonds, Series 2017B dated June 6, 2017

Fixed Bonds Outstanding $8,270,000Final Maturity October 1, 2047

$23,325,000 State Loan Program Revenue Bonds, Series 2017C dated November 29, 2017

Fixed Bonds Outstanding $23,325,000Final Maturity October 1, 2038

$6,720,000 State Loan Program Revenue Bonds, Series 2018A anticpated to close April 2, 2018

Fixed Bonds Outstanding $6,720,000Final Maturity October 1, 2032

2016 General ReserveInvestments $7,500,000

These State Loan Program Revenue Bonds are issued pursuant to a General Bond Resolution dated as of November 1, 2016 by and between the OWRB and the Trustee Bank, as supplemented and amended. The bonds are secured by and repaid from the principal and interest repayments on local loans made from each bond issue.

Cash reserves and surety bonds are pledged to the payment of principal and interest on the bonds in the case of a debt service deficiency. The Trustee Bank invests cash reserves with several investment agreement providers. Investment Earnings are subject to Arbitrage Rebate requirements. Investment earnings in excess of amounts allowable under the Internal Revenue Code are rebated to the United States. Allowable investment earnings are transferred to the Emergency Grant Account. In case of a draw on the reserve to pay principal or interest on the bonds, future investment earnings would capitalize within the reserve until the draw is replenished. The cash reserves will not be used to redeem bonds at issue maturity except in the case of a debt service deficiency.

Local Loans are made to eligible entities at a fixed rate. All loans must meet one of the local reserve requirements as stated below:

Cash Reserve - up to 10% of the loan amount 'Super Debt Coverage Ratio' of 1.40x instead of 1.25x Minimum credit rating of A- affirmed in the last 18 months Surety Policy in the amount of not less than the Cash Reserve Requirement

The Clean and Drinking Water State Revolving Fund Loan ProgramsThe terms of SRF loans include compliance with applicable federal program guidelines, maximum maturity of 30 years. All SRF loans are assessed a 0.5% administrative fee on the outstanding principal balance, and all loans must maintain 1.25 times debt service coverage.

$85,000,000 Clean Water State Revolving Fund Revenue Bonds, Series 2011A dated April 13, 2011

Fixed Bonds Outstanding $56,420,000Final Maturity April 1, 2031

$57,910,000 Drinking Water State Revolving Fund Revenue Bonds, Series 2011B dated April 13, 2011

Fixed Bonds Outstanding $51,420,000Final Maturity April 1, 2042

$49,395,000 Drinking Water State Revolving Fund Revenue Bonds, Series 2012A dated June 12, 2012

Fixed Bonds Outstanding $41,725,000Final Maturity April 1, 2042

$86,505,000 Clean Water State Revolving Fund Revenue Bonds, Series 2012B dated November 7, 2012

Fixed Bonds Outstanding $80,060,000Final Maturity April 1, 2033

$41,410,000 Drinking Water State Revolving Fund Revenue Bonds, Series 2013A dated September 19, 2013

Fixed Bonds Outstanding $34,905,000Final Maturity April 1, 2043

$35,505,000 Drinking Water State Revolving Fund Revenue Bonds, Series 2013B dated September 19, 2013

Fixed Bonds Outstanding $22,675,000Final Maturity April 1, 2025

$55,560,000 Clean Water State Revolving Fund Revenue Bonds, Series 2014A dated March 20, 2014

Fixed Bonds Outstanding $37,080,000Final Maturity April 1, 2026

$100,620,000 Clean Water State Revolving Fund Revenue Bonds, Series 2015 dated December 17, 2015

Fixed Bonds Outstanding $94,945,000Final Maturity April 1, 2040

$90,000,000 Drinking Water State Revolving Fund Revenue Bonds, Series 2016 dated October 19, 2016

Fixed Bonds Outstanding $90,000,000Final Maturity April 1, 2041

$80,055,000 Drinking Water State Revolving Fund Revenue Bonds, Series 2018 dated March 22, 2018

Fixed Bonds Outstanding $80,055,000Final Maturity April 1, 2038

CHECK LIST

ITEMS TO RETURN:

1. Responding Bidder Information Form 076SA: COMPLETED AND SIGNED

2. Certification for Competitive Bid Form 004SA: COMPLETEDAND SIGNED

3. Proposal per requirements ON OUTSIDE OF ENVELOPE, PACKAGE OR CONTAINER WRITE: SOLICITATION NUMBER 2018-0347BID CLOSING DATE: April 10, 2018